MIRA
INFORM REPORT
|
Report Date : |
10.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
LOHIA METALS PRIVATE LIMITED |
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Formerly Known As : |
LOHIA SECURITIES PRIVATE LIMITED |
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Registered Office : |
Whites House, Door No. 111, Flat No. 5, 2nd Floor,
Chinthamani Road, Anna Nagar (East), Chennai – 600 102, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
26.04.1995 |
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Com. Reg. No.: |
18-31099 |
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CIN No.: [Company
Identification No.] |
U65993TN1995PTC031099 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEL02034E |
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PAN No.: [Permanent
Account No.] |
AAACL1054G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Metal Products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 210000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Trade relations are fair. Business is active. No complaints have been
heard. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. Kumaravel |
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Designation : |
Director |
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Contact No.: |
91-9884221421 |
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Date : |
09.12.2008 |
LOCATIONS
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Registered Office : |
Whites House, Door No. 111, Flat No. 5, 2nd Floor, Chinthamani
Road, Anna Nagar (East), Chennai – 600 102, Tamilnadu, India |
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Tel. No.: |
91-44-26631143 |
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Mobile No.: |
91-9884221421 |
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Fax No.: |
91-44-26631364 / 26631143 |
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E-Mail : |
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Website : |
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Location : |
Rented |
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Factory : |
B-19 and B-20, Industrial Estate, Maraimalai Nagar, Dist : Kancheepuram
– 603209, India |
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Tel. No.: |
91-44-47400203 |
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Fax No.: |
91-44-47400204 |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Krishnamurthy Kumaravel |
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Designation : |
Director |
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Address : |
6C/3, Anjugam Nagar, 3rd Street, Ashok Nagar, Chennai – 600
083, Tamilnadu, India |
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Date of Birth/Age : |
09.05.1963 |
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Date of Appointment : |
10.08.1998 |
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Name : |
Mr. Sunil Kumar Bansal |
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Designation : |
Managing Director |
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Address : |
L-136, Anna Nagar East, Chennai – 600 102, Tamilnadu, India |
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Date of Birth/Age : |
30.06.1959 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. Ashish Bansal |
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Designation : |
Director |
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Address : |
L-136, Anna Nagar East, Chennai – 600 102, Tamilnadu, India |
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Date of Birth/Age : |
15.07.1981 |
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Date of Appointment : |
01.04.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 21.07.2008)
|
Names of Shareholders |
No. of Shares |
|
Neelam Bansal |
37500 |
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Pawan Bansal |
48500 |
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Anil Kumar Bansal |
73000 |
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Sunil Kumar Bansal |
69900 |
|
R P Bansal |
46100 |
|
Devakar Bansal |
26500 |
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Saroj Bansal |
12000 |
|
Pondy Oxides and Chemicals Limited |
459000 |
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Vandana Bansal |
81000 |
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Ashish Bansal |
37500 |
Equity share
breakup (percentage of total equity)
(As on 30.09.2008)
|
Category |
Percentage |
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Bodies corporate |
51.00 |
|
Directors or relatives of
directors |
48.44 |
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Other top fifty (50)
shareholders |
0.56 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Metal Products. |
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Exports : |
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Products : |
Metal Products |
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Countries : |
Indonesia |
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Imports : |
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Products : |
Raw Material |
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Countries : |
·
Singapore ·
Malaysia ·
England |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
Credit (90 days) – DT |
GENERAL
INFORMATION
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Customers : |
Manufacturer |
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No. of Employees : |
50 (In Office 10 and In Factory 40) |
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Bankers : |
Canara Bank Round Tana A12/13, Anna Nagar East, Chennai – 600 102, Tamilnadu,
India |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
L Mukundan and Associates Chartered Accountants |
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Address : |
No. 24, V V Koil Street, Teynampet, Chennai – 600 086, Tamilnadu,
India |
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Tel. No.: |
91-44-24351328 / 24349572 |
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E-Mail : |
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Holding Company : |
Pondy Oxides and Chemical Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
900000 |
Equity Shares |
Rs.10/- each |
Rs.9.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
900000 |
Equity Shares |
Rs.10/- each |
Rs.9.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
9.000 |
9.000 |
9.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
33.510 |
14.456 |
7.054 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
42.510 |
23.456 |
16.054 |
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LOAN FUNDS |
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1] Secured Loans |
50.983 |
17.138 |
17.706 |
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2] Unsecured Loans |
22.201 |
13.180 |
10.034 |
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TOTAL BORROWING |
73.184 |
30.318 |
27.740 |
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DEFERRED TAX LIABILITIES |
0.361 |
0.157 |
0.697 |
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TOTAL |
116.055 |
53.931 |
44.491 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
13.245 |
10.832 |
12.092 |
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Capital work-in-progress |
1.872 |
0.496 |
0.049 |
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INVESTMENT |
3.754 |
1.467 |
0.472 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
24.416
|
10.644 |
12.694 |
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Sundry Debtors |
38.157
|
18.779 |
20.381 |
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Cash & Bank Balances |
6.504
|
4.131 |
1.835 |
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Other Current Assets |
64.970
|
13.515 |
0.862 |
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Loans & Advances |
0.042
|
0.041 |
0.007 |
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Total
Current Assets |
134.089
|
47.110 |
35.779 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
26.642
|
3.261 |
3.587 |
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Provisions |
10.263
|
2.713 |
0.314 |
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Total
Current Liabilities |
36.905
|
5.974 |
3.901 |
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Net Current Assets |
97.184
|
41.136 |
31.878 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
116.055 |
53.931 |
44.491 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales and Other Income |
529.846 |
213.571 |
204.119 |
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Profit/(Loss) Before Tax |
29.291 |
9.092 |
4.365 |
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Provision for Taxation |
10.467 |
2.173 |
0.034 |
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Profit/(Loss) After Tax |
18.824 |
6.919 |
4.331 |
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Expenditures : |
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Interest |
9.387 |
4.172 |
4.700 |
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Depreciation & Amortization |
1.179 |
1.265 |
0.676 |
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Other Expenditure |
489.989 |
199.042 |
194.378 |
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Total Expenditure |
500.555 |
204.479 |
199.754 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
3.55
|
3.24 |
2.12 |
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Net Profit Margin (PBT/Sales) |
(%) |
5.53
|
4.26 |
2.14 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
19.89
|
15.69 |
9.12 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.69
|
0.39 |
0.27 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.59
|
1.55 |
1.97 |
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Current Ratio (Current Asset/Current Liability) |
|
3.63
|
7.89 |
9.17 |
LOCAL AGENCY
FURTHER INFORMATION
Form No. 8
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Name of the company |
LOHIA METALS PRIVATE LIMITED |
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Presented By |
Mr. Kumaravel,
Director |
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1) Date and description of instrument creating the change |
Creation of
Equitable Mortgage by Deposit of title deeds on 14.12.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.2.000 millions
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Letter evidencing
deposit of title deeds |
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4) Gist of the terms and conditions and extent and operation of the charge. |
On the original
sale deed dated 23.01.2001. Original Sale Agreement dated 08.12.2005. Original
encumberance Certificate for the period 01.01.2001 to 27.11.2005 and property
tax receipt dated 05.07.2005. |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank Anna Nagar East, Chennai – 600 102, Tamilnadu, India |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
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Corporate
identity number of the company |
U65993TN1995PTC031099 |
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Name of the
company |
LOHIA METALS PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
Whites House, Door No. 111, Flat No. 5, 2nd Floor,
Chinthamani Road, Anna Nagar (East), Chennai – 600 102, Tamilnadu, India |
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This form is for |
Modification of
charge |
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Type of charge |
·
Immovable
property ·
Book debts ·
Movable
property (not being pledge) ·
Floating
charge |
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Particular of
charge holder |
Canara Bank Round Tana A12/13, Anna Nagar East, Chennai – 600 102, Tamilnadu,
India |
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Nature of
instrument creating charge |
Supplemental common
Hypothecation agreement. |
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Date of
instrument Creating the charge |
24.03.2008 |
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Amount secured by
the charge |
Rs.122.500
millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest As per the
Sanction Letter and as determined by the Banker from time to time. Terms of
repayment As per the
Sanction Letter and as determined by the Banker from time to time. Margin PC/FBE – 10% IFLC/BG – 25% Stock – 25% Book Debts – 40% Extent and operation
of the charge As per the
Sanction Letter Others
All other terms
and conditions as per the instruments executed on 24.03.2008. |
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Particulars of
the property charged |
Hypothecation by
way of First Charge in favour of the Bank; ·
All goods, stock
in trade, book debts, receivables and movable property of the company both
present and future. ·
Hypothecation
of Plant and machinery of Rs.2.800 millions. EMT of factory
land and building (10836 sq. ft.) at B-19 and 20, SIDCO Industrial Estate,
Maraimalai Nagar, Chengalpattu District value as per valuation report dated
20.06.2007-Rs.18.400 millions. |
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Operations
During the year the company produced 3789 mts (2455) mts of Lead Ingots and
achieved a sale turnover of Rs.521.399 millions (Rs.212.427 millions) during
the year 2007-08.
Fixed Assets
·
Free hold Land
·
Building
·
Plant and Machinery
·
Lab Equipments
·
Furniture and Fittings
·
Office equipments
·
Vehicles
·
Electrical Fittings
Web Details
Profile
Subject was established in the year 2004 at Maraimalai Nagar Industrial
Estate, Kancheepuram District by a group of committed professional
entrepreneurs with wide manufacturing knowledge of over three decades. Subject
is engaged in the process of refining and alloying of lead metal having a
license to manufacture 1000 MTs per month. The Company has established a
State of the Art Manufacturing Plant and has taken special care to maintain the
quality of each and every ingot produced using advanced testing equipments like
SPECTRO.
Lead being a very soft and pliable metal highly resistant to corrosion
makes it suitable for various uses both as the metal and as its chemical
compounds in pigments, crystal glass, pipes, sheathing, batteries, weights, fishing
ropes and others. With the boom in the automobile industry lead metal is being
excessively used. The largest market for lead is in battery production, which
accounts to approximately two thirds of the lead produced in the world.
The Company has employed persons from the
Lead Industries having vast experiences of more than 25 years in the field.
These people are asset to the Company and are keeping strict vigil both in
manufacturing and quality of the materials.
Above all the Company has well educated
eminent people on the Board of Directors who are managing the Company and are
trying their best to keep the name of the Company as one of the best Company in
Lead Industry to give Quality Lead and Lead Alloys.
They are committed in providing an
outstanding level in terms or quality and continuous improvement to ensure that
they do not fall behind the customers' requirements
Any organization
dealing with subject
can be assured of the highest level of professional service, whatever the nature
of the relationship.
Products
Subject use
pyrometallurgical refining process for refining Lead to achieve a minimum
purity level of 99.97%. The refining pots have high efficiency diesel burners
with digital temperature controllers and special arrangements for flu gas
lines. All the emissions are treated through a dust collector and wet scrubber
attached to an Induced Draft Fan along with a chimney/stack arrangement
connected to a programmable logic controller. This helps them to keep up the
social responsibilities towards pollution and gives them a clean working
environment.
The refining
process takes place in various steps of removal of impurities and other metals
from Lead such as Cu, Sb, Sn, As, etc. the process is carried by addition of
various fluxes at different temperatures and quantities based on the sample
taken from the homogeneous initial bath.
The refining
process is carried out in the molten state of lead of temperature ranging from
327ºc (Melting/fusion Point) to 650ºc (Boiling Point) performed in liquid
phase, which means that the crude Lead must be melted to temperatures from
327ºC (Lead fusion point) to 650ºC (Lead boiling point).
Copper (Cu) is the
first element to be removed with respective flux addition and almost all copper
is removed as a copper sulfide (CuS) skims. Similarly other impurities are
removed by addition of suitable fluxes in various stages and the skims, which
are mechanically removed. At various stages a bath sample is drawn and sparked
in a spectro for analysis of impurities left.
The forte is in
the process to manufacture Lead Alloys like, Lead Selenium Alloy, Lead Antimony
Selenium Alloy, and others, which find their use in the battery industry for
grid casting in low maintenance Lead-Acid Batteries.
Subject also
manufacture custom made alloys as per the specifications desired by the
customer with similar care and expertise.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.22 |
|
UK Pound |
1 |
Rs.73.03 |
|
Euro |
1 |
Rs.63.14 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|